Fair Value Measurement

12 Months Ended

Sep. 02, 2012

Fair Value Measurement

Note 3—Fair Value Measurement

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The tables below present information at the end 2012 and 2011, respectively, regarding the Company’s financial assets and financial liabilities that are measured at fair value on a recurring basis, and indicate the level within the fair value hierarchy of the valuation techniques utilized to determine such fair value. As of these dates, the Company’s holdings of Level 3 financial assets and liabilities were immaterial.

2012:	Level 1		Level 2
Money market mutual funds(1)	$	77	$	0
Investment in U.S. government and agency securities(2)		0		794
Investment in corporate notes and bonds		0		54
Investment in FDIC-insured corporate bonds		0		35
Investment in asset and mortgage-backed securities		0		8
Forward foreign-exchange contracts, in asset position(3 )		0		1
Forward foreign-exchange contracts, in (liability) position(3 )		0		(3	)
Total	$	77	$	889

2011:	Level 1		Level 2
Money market mutual funds(1)	$	200	$	0
Investment in U.S. government and agency securities(2)		0		1,177
Investment in corporate notes and bonds		0		7
Investment in FDIC-insured corporate bonds		0		209
Investment in asset and mortgage-backed securities		0		12
Forward foreign-exchange contracts, in asset position(3 )		0		1
Forward foreign-exchange contracts, in (liability) position(3 )		0		(2	)
Total	$	200	$	1,404

⁽¹⁾  Included in cash and cash equivalents in the accompanying consolidated balance sheets.

⁽²⁾  $12 and $782 included in cash and cash equivalents and short-term investments, respectively, in the accompanying consolidated balance sheets at the end of 2012. $73 and $1,104 included in cash and cash equivalents and short-term investments, respectively, in the accompanying consolidated balance sheet at the end of 2011.

⁽³⁾  The asset and the liability values are included in deferred income taxes and other current assets and other current liabilities, respectively, in the accompanying consolidated balance sheets. See Note 1 for additional information on derivative instruments.

All financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during 2012 and 2011 were immaterial. There were no transfers in or out of Level 1, 2, or 3 during 2012 and 2011.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Financial assets measured at fair value on a nonrecurring basis include held-to-maturity investments that are carried at amortized cost and are not remeasured to fair value on a recurring basis. There were no fair value adjustments to these financial assets during 2012 and 2011. See Note 4 for discussion on the fair value of long-term debt.

Nonfinancial assets measured at fair value on a nonrecurring basis include items such as long lived assets resulting from impairment, if deemed necessary. Fair value adjustments to these nonfinancial assets and liabilities during 2012 and 2011 were immaterial.